The Coalition of Azerbaijan Non-Government Organizations “For Improving Transparency in Extractive Industries,” the PWYP-affiliated national coalition in Azerbaijan

In Azerbaijan, the extractive sector, mainly oil and gas, accounts for 54% of GDP, and has provided the country with stable GDP growth in recent years. Perhaps it is no surprise then that Azerbaijan was among the pioneering countries to implement the Extractive Industries Transparency Initiative (EITI). Azerbaijan soon became an EITI “poster child,” producing regular EITI reconciliation reports and being granted compliant status at the EITI international conference held in Doha in February 2009. However, these successes were somewhat overshadowed by the delays it faced in fulfilling important conditions set by the EITI Board in granting Azerbaijan its compliant status. One of these conditions was the timely establishment of a multi-stakeholder group (MSG) to formalise civil society participation in Azerbaijan’s EITI process, a crucial element of the EITI framework.
For the first time in the history of modern Azerbaijan, the State Oil Company has signed two oil development deals “in the dark,” without public notice of its negotiations with the foreign companies involved, and without the traditional public contract signing ceremony.
The Azerbaijan NGO Coalition is alarmed by this backwards step in the country’s excellent tradition of oil contract transparency. This incident may demonstrate the beginning of a dangerous trend in the preparation and signing of extractive industry contracts.
Ingilab Ahmadov
Ingilab Ahmadov is a key member of the Azerbaijan NGO Coalition for “Increasing Transparency in Extractive Industries” and a member of the international Board of the Extractive Industries Transparency Initiative.
Ingilab Ahmadov was born on October 23, 1960 in Lenkoran city, Azerbaijan. During 1982-1987 he studied at the Faculty of Economics at Saint-Petersburg State University (formerly Leningrad) in Russia. From 1987 to 1990 Mr. Ahmadov undertook his post-graduate study at the same University.
Azerbaijan became the first country to be granted Compliant status by the EITI Board on February 16, 2009. The EITI Board granted this status to Azerbaijan with certain conditions, namely the establishment of a formal multistakeholder group (MSG) and the establishment of a work plan. (There is a unique historical context in Azerbaijan with respect to its work plan and MSG that was taken into account in this case. Azerbaijan developed an EITI process and issued EITI reports prior to the establishment of the EITI Validation Guide. For a more complete description of the Board decision, please refer to the Minutes of the 7th EITI Board Meeting which are available on the EITI website at http://eiti.org/about/boardmeetings). As of 24 August 2009, the conditions placed upon Azerbaijan have still not been met. PWYP is monitoring the situation closely and is working closely with civil society in Azerbaijan and the EITI International Secretariat to ensure that corrective actions are being taken. On 21 August 2009 the Azerbaijan NGO Coalition for “Increasing Transparency in Extractive Industries” released a statement calling for the conditions laid out at the 7th EITI Board meeting in Doha, Qatar to be respected.
Doha: Publish What You Pay (PWYP), the global civil society coalition, said today that the Extractive Industries Transparency Initiative (EITI) needs to redouble its efforts to protect civil society activists and ensure that civil society is an equal partner in efforts to achieve transparency in natural resource revenue management.
This report focuses on the paradoxical links between natural resource wealth and child poverty in developing countries, including Azerbaijan, Nigeria, Sudan and Venezuela. It includes recommendations for governments, companies, shareholders, donors and civil society on how to enhance transparency over company payments and government revenues, which Save the Children UK believes to be integral to a more accountable system for the management of such revenues that is in the best interests of children.
Op-ed by Director of Global Witness, Simon Taylor.
While oil, gas and minerals are by far the largest sources of state revenue for the world’s poorest nations, these resources, which should help fund development and sustainable economic growth, all too often turn out to be a curse, leading to increased poverty, child malnutrition and civil conflict.
In the 2008 Report on Revenue Transparency of Oil and Gas Companies, Transparency International (TI) evaluates 42 leading oil and gas companies on their current policies, management systems and performance in areas relevant to revenue transparency in their upstream operations.
National Budget Group and Coalition “For Improving Transparency in Extractive Industries” (EITI) press conference.
Washington, D.C., – The World Bank Group announced today its formal endorsement of the Extractive Industries Transparency Initiative and pledged to work with several developing nations, as well as companies, on ways to publish revenues accruing from oil, gas, and mining sectors.
The Extractive Industries Transparency Initiative was launched in September 2002 by British prime minister Tony Blair at the World Summit on Sustainable Development in Johannesburg, and is being championed by the U.K.